Akamai Technologies demonstrates strong business quality through its transition to cybersecurity and cloud computing, supported by a robust edge network. However, challenges in the delivery segment and dependence on large customers pose risks. Future prospects are promising, with significant growth expected in cloud infrastructure services and ongoing innovation, though macroeconomic factors may limit potential.
Analysis Date: February 20, 2025 Last Updated: May 29, 2025
+11%
+1.1% per year
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
CountryUS
ExchangeNASDAQ
IndustrySoftware - Infrastructure
SectorTechnology
Market Cap$14.17B
CEODr. F. Thomson Leighton
Akamai Technologies, Inc. helps make websites and online services faster and safer. They provide cloud services that protect businesses from online threats, like hackers, while also improving how quickly content, like videos and apps, load for users. Think of them as a security guard and a speed booster for the internet, ensuring that websites work well and stay safe. Founded in 1998 and based in Cambridge, Massachusetts, Akamai serves customers around the world.
Core Products
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DNS ServicesResolves domain names
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Carrier OfferingsProvides network solutions
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Akamai Cloud SecurityProtects against cyber threats
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Graham Value Metrics
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Income Statement Flow
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AKAM Stock Analysis: Akamai Technologies, Inc. Investment Guide
AKAM (Akamai Technologies, Inc.) is a Technology company listed on NASDAQ Global Select. The stock has generated 1.1% annual returns with an overall investment score of None/100.
Akamai Technologies demonstrates strong business quality through its transition to cybersecurity and cloud computing, supported by a robust edge network. However, challenges in the delivery segment and dependence on large customers pose risks. Future prospects are promising, with significant growth expected in cloud infrastructure services and ongoing innovation, though macroeconomic factors may limit potential.
AKAM Key Financial Metrics
AKAM financial analysis includes comprehensive valuation ratios, profitability metrics, and financial health indicators. The company has a valuation score of 9.079452890395457/100 and profitability score of 3.75/100 with financial health rated 5.8500000000000005/100.
About Akamai Technologies, Inc.
Akamai Technologies, Inc. helps make websites and online services faster and safer. They provide cloud services that protect businesses from online threats, like hackers, while also improving how quickly content, like videos and apps, load for users. Think of them as a security guard and a speed booster for the internet, ensuring that websites work well and stay safe. Founded in 1998 and based in Cambridge, Massachusetts, Akamai serves customers around the world.
AKAM Investment Recommendation
Based on our comprehensive analysis of AKAM, investors should consider the company's positive performance track record, earnings consistency (9/10 quarters beat expectations), and current valuation metrics when making investment decisions.
Technology Sector Analysis
AKAM operates in the Software - Infrastructure industry within the Technology sector. This analysis compares Akamai Technologies, Inc. performance against industry and sector benchmarks to provide context for investment decisions.
Frequently Asked Questions about AKAM Stock
Is AKAM a good investment?
AKAM (Akamai Technologies, Inc.) has generated 1.1% annual returns with an overall score of None/100. Akamai Technologies demonstrates strong business quality through its transition to cybersecurity and cloud computing, supported by a robust edge network. However, challenges in the delivery segment and dependence on large … Investors should consider their risk tolerance and investment goals when evaluating AKAM.
What is AKAM P/E ratio and valuation?
AKAM valuation metrics including P/E ratio, price-to-book ratio, and price-to-sales ratio are analyzed on this page with comparisons to Software - Infrastructure industry and Technology sector benchmarks. The company currently has a valuation score of 9.079452890395457/100.
Should I buy AKAM stock now?
The decision to buy AKAM stock should be based on comprehensive analysis of financial metrics, market conditions, and individual investment goals. Our analysis provides profitability score of 3.75/100, financial health score of 5.8500000000000005/100, and detailed performance metrics to help inform your investment decision.
What are AKAM financial health indicators?
AKAM financial health analysis includes liquidity ratios, debt levels, cash flow metrics, and profitability indicators. The company has a financial health score of 5.8500000000000005/100 based on comprehensive analysis of balance sheet strength and operational efficiency.
How does AKAM compare to competitors?
AKAM performance is benchmarked against Software - Infrastructure industry peers and Technology sector averages. Our analysis includes comparative valuation ratios, profitability metrics, and growth indicators to provide context for Akamai Technologies, Inc.'s market position.
What are AKAM historical returns?
AKAM has generated 1.1% annual returns over the 10Y. Historical performance analysis includes price appreciation, dividend yields, and total shareholder returns compared to market benchmarks.
AKAM Key Investment Metrics Summary
Annual Return: 1.1%
Valuation Score: 9.079452890395457/100
Profitability Score: 3.75/100
Financial Health Score: 5.8500000000000005/100
Growth Score: 24.73968712661782/100
Earnings Beat Rate: 9/10 quarters
Sector: Technology
Industry: Software - Infrastructure
Exchange: NASDAQ Global Select
Market Cap: 14172415180
AKAM Investment Thesis
Akamai Technologies, Inc. (AKAM) represents a conservative investment opportunity in the Technology sector. With an overall score of None/100, the company demonstrates areas for financial improvement.
Investment Strengths
Moderate P/E Ratio
Attractive Price to Sales Ratio
Strong Gross Profit Margin
Healthy Net Profit Margin
Good Interest Coverage Ratio
Adequate Current and Quick Ratios
Strong Transition to Security and Cloud Computing
Established Competitive Edge
Diverse Customer Base and Revenue Streams
Growth in Cloud Infrastructure Services
Innovative Product Development
Improved Sales Strategy
Investment Risks
High EV/EBITDA Ratio
Moderate Return on Equity
Significant Debt Levels
Declining Delivery Revenue
Dependence on Large Customers
Market Sensitivity to Macroeconomic Factors
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